the future of banking
DESCRIPTION
By Chris Skinner, Financial Services Club. Presented at Crowdsourcing Week Europe 2014. Join us at the next event: http://crowdsourcingweek.com/TRANSCRIPT
Financial institutions were built for the physical distribution of paper in a localized network
Financial institutions need to design for the digital distribution of data in a globalized network
from Physical to Digital
from Channel to Access
from Product to Customer
RETAIL BANKING
TRANSACTION BANKING
COMMERCIAL BANKING
PRIVATE BANKING
INVESTMENT BANKING
INSURANCE
RETAIL BANKING
TRANSACTION BANKING
COMMERCIAL BANKING
PRIVATE BANKING
INVESTMENT BANKING
INSURANCE
RETAIL BANKING
TRANSACTION BANKING
COMMERCIAL BANKING
PRIVATE BANKING
INVESTMENT BANKING
INSURANCE
RETAIL BANKING
TRANSACTION BANKING
COMMERCIAL BANKING
PRIVATE BANKING
INVESTMENT BANKING
INSURANCE
RETAIL BANKING
TRANSACTION BANKING
COMMERCIAL BANKING
PRIVATE BANKING
INVESTMENT BANKING
INSURANCE
RETAIL BANKING
TRANSACTION BANKING
COMMERCIAL BANKING
PRIVATE BANKING
INVESTMENT BANKING
INSURANCE
RETAIL BANKING
TRANSACTION BANKING
COMMERCIAL BANKING
PRIVATE BANKING
INVESTMENT BANKING
INSURANCE
$1 TRILLION BY 2025*
* Foundation Capital, 2014
RETAIL BANKING
TRANSACTION BANKING
COMMERCIAL BANKING
PRIVATE BANKING
INVESTMENT BANKING
INSURANCE
RETAIL BANKING
TRANSACTION BANKING
COMMERCIAL BANKING
PRIVATE BANKING
INVESTMENT BANKING
INSURANCE
RETAIL BANKING
TRANSACTION BANKING
COMMERCIAL BANKING
PRIVATE BANKING
INVESTMENT BANKING
INSURANCE
RETAIL BANKING
TRANSACTION BANKING
COMMERCIAL BANKING
PRIVATE BANKING
INVESTMENT BANKING
INSURANCE
Revenues Expenses
October 2011
Launch of X.commerce API October 2011
Launch of X.commerce API
June 2013
Launch of mobile API June 2013
Launch of mobile API
RETAIL BANKING
TRANSACTION BANKING
COMMERCIAL BANKING
PRIVATE BANKING
INVESTMENT BANKING
INSURANCE
RETAIL BANKING
TRANSACTION BANKING
COMMERCIAL BANKING
PRIVATE BANKING
INVESTMENT BANKING
INSURANCE
RETAIL BANKING
TRANSACTION BANKING
COMMERCIAL BANKING
PRIVATE BANKING
INVESTMENT BANKING
INSURANCE
Every single smart computer science person I’ve had look into it has reached the same conclusion — Blockchain is a fundamental breakthrough in technology
“
”Mark Andreessenhttp://techcrunch.com/2014/02/12/marc-andreessen-tech-is-still-recovering-from-a-depression/
RETAIL BANKING
TRANSACTION BANKING
COMMERCIAL BANKING
PRIVATE BANKING
INVESTMENT BANKING
INSURANCE
RETAIL BANKING
TRANSACTION BANKING
COMMERCIAL BANKING
PRIVATE BANKING
INVESTMENT BANKING
INSURANCE
RETAIL BANKING
TRANSACTION BANKING
COMMERCIAL BANKING
PRIVATE BANKING
INVESTMENT BANKING
INSURANCE
RETAIL BANKING
TRANSACTION BANKING
COMMERCIAL BANKING
PRIVATE BANKING
INVESTMENT BANKING
INSURANCE
RETAIL BANKING
TRANSACTION BANKING
COMMERCIAL BANKING
PRIVATE BANKING
INVESTMENT BANKING
INSURANCE
from Physical to Digital
from Channel to Access
from Product to Customer
= component-based finance
from Physical to Digital
from Channel to Access
from Product to Customer
= component-based finance
WEB/TABLET “SCREENS”
7–10 times per month
BRANCH
5–10 times per month
CALL CENTRE, IVR & VOICE RESPONSE
5–10 times per month
ATM
3–5 times per month
MOBILE
20–30 times per month
2016Digital interactions with banks will outnumber branch interactions 300 to 1
Barclays took 13 years to get two million customers using internet banking.
It took just two months to reach that number for mobile banking.
The average Barclays customer visits a branch less than twice a month and uses the
mobile app 26 times a month
Only 5% of customer interaction in the banking industry will be in branch by 2017
– BBVA
The old channel thing …
Augmented digital has no channels
CHANNELS
MULTICHANNEL LAYER
PRESENTATION LAYER
LEGACY LAYER
Branch ATM/Kiosk Internet Call Center Mobile Direct sales Future
ACCESS
Branch ATM/Kiosk Internet Call Center Mobile Direct sales Future
from Physical to Digital
from Channel to Access
from Product to Customer
= component-based finance
= rearchitect the core
from Physical to Digital
from Channel to Access
from Product to Customer
= component-based finance
= rearchitect the core
RETAIL BANKING
TRANSACTION BANKING
COMMERCIAL BANKING
PRIVATE BANKING
INVESTMENT BANKING
INSURANCE
You need to be social because that’s where your customers are.
Average Facebook user has 338 friends*
2,000 Likes = 676,000 Views
Average cost to gain a registration: €1.33
Average cost to gain a fully KYC processed customer: €16.70* Pew Research
from Physical to Digital
from Channel to Access
from Product to Customer
= component-based finance
= rearchitect the core
= build communities
